e-commerce berlin expo 2017 - understanding merchant growth paths in the digital age: the payments...
TRANSCRIPT
MEETS THE CHALLENGE OF CHANGE Confidential
eCommerce EXPO 2017
UNDERSTANDINGMERCHANT GROWTH PATHS IN THE DIGITAL AGE:THE PAYMENTS PERSPECTIVE
ConfidentialMEETS THE CHALLENGE OF CHANGE
Interactions Are Increasingly DigitalTime spent online is double that five years ago
ConfidentialMEETS THE CHALLENGE OF CHANGE
Millennials: The Digital NativesMost millenials do not remember a world before the internet
ConfidentialMEETS THE CHALLENGE OF CHANGE
The Unprecedented Growth Of Mobile
8.6 billion mobile devices
1.2 devices per person
2016 nearly 80% of mobile users in developed
markets use a smartphone
2020 nearly 70% of the
world‘s population are expected to have a
smartphone.
ConfidentialMEETS THE CHALLENGE OF CHANGE
Channels are ConvergingMore and more brands are omni-channel
ConfidentialMEETS THE CHALLENGE OF CHANGE
Growth Lies in Digital Channels
US UK GER FR ESP IT NL SE NO DK€ 0
€ 125
€ 250
€ 375
€ 500
€ 625
e/m-Commerce Turnover(in € bil.; selected markets; growth = 2012-2016E CAGR)
Country 2014 2016 (F) 2018 (F)
Over one billion digitally-active
consumers spend nearly $2 trillion a year
online.
ConfidentialMEETS THE CHALLENGE OF CHANGE
Market ContextSocietal and technological shifts signal new growth opportunities
ConfidentialMEETS THE CHALLENGE OF CHANGE
Societal and technological shifts signal new growth opportunitiesMarket Context
ConfidentialMEETS THE CHALLENGE OF CHANGE
Market ContextSocietal and technological shifts signal new growth opportunities
MEETS THE CHALLENGE OF CHANGE Confidential
DEFINING MERCHANT GROWTH STRATEGIES
eCommerce EXPO 2017Understanding Merchant Growth Paths in the Digitial Age: The Payments Perspective
ConfidentialMEETS THE CHALLENGE OF CHANGE
Selecting a Suitable Growth StrategyThere are many directions for merchants to grow
1. Going online for the first time
2. Optimizing domestic eCommerce business
3. Expanding cross-border
4. Investing in mobile
5. Delivering on omni-channel
ConfidentialMEETS THE CHALLENGE OF CHANGE
1. Going Online For The First TimeBrick-and-mortar strategies thrived for decades are now under pressure
eCommerce challenges:• Balancing simplicity with effectiveness• Order management and fulfilment• Warehousing and shipping• Remote customer service• Mitigating unknown risks and complexities• Managing new customer service needs
Challenges on the payments side:• Online payment acceptance• Processing alternative payment methods• Dealing with PCI compliance• Enabling alternative payment methods for different regions• Online authentication and fraud prevention• Settlement of funds and reconciliation• Reporting
ConfidentialMEETS THE CHALLENGE OF CHANGE
2. Optimizing Domestic eCommerce BusinesseCommerce enables shoppers to cross borders conveniently
eCommerce challenges:• High shopping cart abandonment• Improving customer checkout experience • Constant iteration and testing• The loss of 1-to-1 merchant-shopper
transparency• Loyalty platform
Challenges on payments side:• Getting the best out of payment service providers• One-click checkout and card vaults• Additional alternative payment methods• Balancing and fine-tuning fraud rules and analytics
with conversion• Speed and uptime problems
ConfidentialMEETS THE CHALLENGE OF CHANGE
3. Expanding InternationallyDomestic merchants pursuing a cross-border eCommerce strategy
Different models have different eCommerce challenges• Adapting business processes to local payment methods• Website localization• Operational adaptation to meat customer expectations• Maintaining high conversion rates when card issuers tend to
decline more cross-border transactions
Challenges on payments side:• Accepting local payment methods• Local regulations and tax issues• Checkout localization• Pricing in local currencies • Locally preferred alternative payments• Connections to local card acquirers• Fraud tailored to local conditions
ConfidentialMEETS THE CHALLENGE OF CHANGE
4. Investing in MobileMobile commerce has grown three to four times faster than PC-based eCommerce
ConfidentialMEETS THE CHALLENGE OF CHANGE
Mobile Outgrows Traditional eCommerceMobile commerce has grown three to four times faster than PC-based eCommerce
AUS AUT BRA CAN CHI DEN FRA GER ISR ITA MEX NLD NOR POL RUS SPA SWE SWZ TUR UAE UK USA0%
15%
30%
45%
60%
m-Commerce has grown three to four times faster than PC-based eCommerce over the past several years
(% estimated CAGR 2013–2016 of total e/m-commerce; selected markets) Online commerceMobile commerce
Mobile has grown from 5% of all digital commerce to more
than 30% in the US and UK.
In other global markets such as
China, mobile already accounts for more
than 50% of purchases.
ConfidentialMEETS THE CHALLENGE OF CHANGE
4. Investing in MobileThriving in omni-channel
mCommerce challenges:• Smaller screen require rethinking of hover-
over design elements, pop-up windows, fixed-sized iFrames
• Shorter attention spans• App design and development• Mobile marketing and design strategy• Mobile checkout completion rates are 40%
lower on mobile than on desktop
Challenges on payments side:• Mobile requires frictionless payments• One-click checkout• Mobile authentication (biometrics)• Enabling in-app commerce and payments
Offering new mobile payment methods• Mobile fraud prevention strategy
ConfidentialMEETS THE CHALLENGE OF CHANGE
Key Takeaways Along All Growth PathsGrowth paths show that needs evolve
Service Providers, you need not only focus on your merchants’ needs of
today, but also on the ones they are likely to face tomorrow
Merchants, carefully assess your needs and focus on those facilitating
your growth path
1. Optimize payments to improve customer experience
2. Channels create different payment requirements
3. Balance speed to market with control and complexity
4. Build a robust but flexible foundation (with omni-channel in mind)
5. Centralize payments infrastructure, processing and vendors where possible
6. There is no single panacea for payment acceptance, so be practical
ConfidentialMEETS THE CHALLENGE OF CHANGE
Enabling Merchant Growth StrategiesACI’s UP eCommerce Payments solution
We provide simple, one time integration; with an exceptional developer portal merchants can be up and running rapidly, and can immediately go live.
We are truly global; we offer the widest range of payment methods for international expansion and local relevance. Our extensive global network is continuously growing.
Through world-class integrated fraud detection, prevention and transaction monitoring, merchants can achieve the highest acceptance levels and lowest chargeback rates in the industry.
SIMPLE GLOBAL SECURE
MEETS THE CHALLENGE OF CHANGE Confidential
WHITEPAPER
FAST-TRACK MERCHANT GROWTH PATHS IN GLOBAL eCOMMERCEDOWNLOAD HEREhttp://unbouncepages.com/aci-white-paper-merchant-growth/
© Copyright ACI Worldwide, Inc. 2016ACI, ACI Payment Systems, the ACI logo, ACI Universal Payments, UP, the UP logo, ReD, PAY.ON and all ACI product names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties’ trademarks referenced are the property of their respective owners.